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First National Bank of Oklahoma is proud to announce the successful closing of a $3,864,000 USDA Business & Industry (B&I) Guaranteed Loan to refinance a portfolio of recently constructed cell towers located in Michigan, Ohio, Indiana, and Kentucky.
Purpose of the Loan
This refinancing facility was structured to pay down the borrower’s existing construction line of credit, unlocking capital and increasing flexibility for future tower development. The loan supports a strategic build-to-suit agreement with major national cellular carriers and aligns with the borrower’s long-term infrastructure growth strategy.
Loan Details
- Loan Type: USDA Business & Industry Guaranteed Loan
- Loan Amount: $3,864,000
- Use of Funds: Refinance of construction line of credit for completed towers
- Term & Amortization:
- 25-year term
- 2-year interest-only period
- 23-year amortization thereafter
- States Covered: Michigan, Ohio, Indiana, Kentucky
Strategic Benefits
- Supporting a High-Growth Telecom Infrastructure Developer
This refinancing is part of a broader initiative by one of the largest privately held cell tower developers in the U.S., who is actively constructing towers under build-to-suit contracts for top-tier wireless carriers. These towers are designed for long-term utility, with room to support multiple tenants per location. - Improving Capital Efficiency
By refinancing the construction line of credit, the borrower can redeploy capital into new build-to-suit tower projects—continuing to scale their network and meet the surging demand for wireless connectivity across rural and suburban America. - Income Upside Through Fixed-Cost Efficiency
These towers initially support a single anchor tenant but are built with capacity for additional users. Once new tenants are added, nearly 100% of incremental rent revenue flows directly to the bottom line, as fixed operational costs remain unchanged. This creates meaningful cash flow uplift over time. - Flexible Structure with Built-in Cash Flow Relief
The 2-year interest-only period, followed by a 23-year amortization, offers the borrower breathing room during the early, lower-yielding years of tower operation. This structure aligns perfectly with the asset’s income trajectory, improving both short-term and long-term viability.
Why USDA B&I?
The USDA Business & Industry Guaranteed Loan Program is a powerful tool for rural infrastructure developers seeking non-traditional financing solutions.
For this refinancing project, the USDA B&I loan provided:
- Extended amortization terms uncommon in the private debt market
- Interest-only relief during early-stage cash flow ramp-up
- Higher advance rates and flexible structuring for capital-intensive buildouts
- Geographic eligibility across multiple rural and semi-rural states
By working closely with First National Bank of Oklahoma, the borrower was able to tailor a financing solution that meets the timing and complexity of their expanding cell tower portfolio.
Powering the Future of Connectivity
As rural and suburban regions demand stronger wireless infrastructure, First National Bank of Oklahoma is proud to stand behind telecom developers who are meeting that challenge with scale, expertise, and forward-thinking partnerships.
If your business is investing in mission-critical infrastructure across rural America, our experienced USDA lending team can help you find the capital and structure that supports your long-term vision.
Focused on Financing What’s Next
Visit USDA Rural Development learn more about USDA B&I loan opportunities.